Naval Vessel Construction Abroad: New Rules and Cost Savings
New rules allow the construction of U.S. naval vessels in foreign shipyards, but only in allied countries and when it is cheaper than in the U.S. This aims to enhance naval readiness and ensure more efficient use of taxpayer money. It also prevents Chinese companies from being involved in these projects.
Key points
Allows U.S. naval vessel construction in shipyards of NATO countries or Indo-Pacific nations with mutual defense treaties.
Foreign construction is permitted only if it is less expensive than domestic construction.
Requires certification that the foreign shipyard is not owned or operated by a Chinese company.
Introduced
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